Auto Trader data reveals surge in used car sales
Used car sales are expected to rise five per cent year-on-year in the second half of the year, with a further 350,000 transactions.
According to data from Auto Trader, sales are already up five per cent so far in 2024 with June witnessing the largest monthly rise in 15 months.
Meanwhile, sales in July are up four per cent on the same month last year, with cars selling on average five days faster than in July 2023.
However, will demand remains healthy, Auto Trader is warning of unprecedented shifts in supply as the UK car parc evolves rapidly.
Surge in used car sales
Supply of used cars between one and five-years-old fell by 16% in the last six months and Auto Trader expects that by the end of the year there will be 28% fewer cars under five years old in the parc compared to 2019.
Conversely, cars over 10 years old are more in demand. They accounted for a 13% share of retail stock in 2019 but that is already up to 22%.
Compounding the challenge is the huge surge in electric vehicles entering the parc. By the end of this year, Auto Trader estimates around four per cent of the cars on the road will be an EV but by 2033, that number will have risen to over a third, while the proportion of petrol and diesel will have shrunk to around half.
Marc Palmer, head of strategy and insights, said:
“2024 has had its challenges, but overall, it’s performed well, and based on the current trajectory our outlook for the rest of the year remains positive. However, the heavily nuanced market retailers have had to manage over the last few years is only set to intensify, as the combination of supply constraints, more electric cars, and a changing brand landscape mean the parc will soon look very different. With such a dramatic change in forecourt dynamics, sourcing, pricing and selling cars are going to require a blend of both instincts and insights to navigate the market ahead.”
